Merger creates largest Korean-American bank

Nara Bancorp will buy Center Financial Corp. in a $270 million, all-stock deal that joins two Koreatown rivals. Both banks had been hit hard by sour commercial real estate loans, as had much of the Korean-American banking sector. Some institutions didn't make it, among them Mirae Bank in Koreatown, though the worst appears to be over. Hanmi needed some help: It's awaiting approval to sell a majority stake to South Korea's Woori Finance Holdings. From the LAT:

"I think this is a terrific deal, not just for shareholders, but for customers too," [Sandler O'Neill analyst Aaron] Deer said in an e-mail. "In many respects, the Korean-American banking niche is in need of consolidation. This deal will give the combined bank some additional scale and help improve its overall operating efficiency. "It will also provide customers with access to more branches and possibly a broader array of products and services," Deer said. "I expect the deal will be welcomed by shareholders of both companies. And, I expect regulators will support the deal too."

The banks said the merger would reduce operating costs by about 10 percent and result in more than 40 branches in California, New York, New Jersey, Seattle and Chicago. Here's the press release and here's the LABJ story.